716 Vol.40,p.970; U. S. C., p. 409 . Restriction on other employment by bank examiners. Vol .48,p .182; U. S. C.,p.398. Loa ns to executive officer of member bank prohibited. !fate, p. 375 . Provisos . Rene wal of l oans made prior to Ju ne 16, 1933 . Loans on approval of board of directors . Officer indebted to other member bank . Report to board of directors. 74TH CONGRESS . SESS . I. CH. 614 . AUGUST 23, 1935 . Reserve bank, or by the Federal Deposit Insurance Corporation, or appointed or elected under the laws of any State ; but shall not apply to private examiners or assistant examiners employed only bya clearing-house association or by the directors of a bank ." (b) Subsection (b) of such section 22 is amended by inserting therein after "no national bank examiner" the following : "and no Federal Deposit Insurance Corporation examiner " ; and by inserting after " member bank " the following : " or insured bank " ; and by ins erting afte r " from the Comptrol ler of the Curre ncy," the follow- i ng : "as to a national bank, t he Board of Gover nors of the Fede ral Reserve System as to a State member bank, or the Federal Deposit Insurance Corporation as to any other insured bank," . (c) Subsection (g) of such section 22 is amended to read as follows "(g) No executive officer of any member bank shall borrow from or otherwise become indebted to any member bank of which he is an executive officer, and no member bank shall make any loan or extend credit in any other manner to any of its own executive officers
Pro- vided, That loans made to any such of ficer prior to June 16, 1933, may be renewed or extended for periods expiring not more than five years from such date where the board of directors of the member bank shall have satisfied themselves that such extension or renewal is in the best interest of the bank and that the officer indebted has made reasonable effort to reduce his obligation, these findings to be evi- denced by resolution of the board of directors spread upon the mi nute book of the bank : Provided further, That wit h the prio r approval of a majority of the entire board of directors, any member bank may extend credit to any executive officer thereof, and such officer may become indebted thereto, in an amount not exceeding $2 ,50 0 . If any executi ve officer of any member bank borr ow from or if he be or become indebted to any bank other than a member bank of which he is an executive officer, he shall make a written report to the board of directors of the member bank of which he is an executive officer, stating the date and amount of such loan or indebtedness, the security therefor, and the purpose for which the proceeds have been Loa ns to part ner- or are to be used . Borrowing by, or loaning to, a partnership in ships . which one or more executiv e officers of a m ember bank are pa rtners having eit her individually or together a ma jority interest i n said partnership, shall be considered within the prohibition of this sub- section . Nothing contained in this subsection shall prohibit any executive officer of a member bank from endorsing or guaranteeing for the protection of such bank any loan or other asset which shall have been previously acquired by such bank in good faith or from incurring any indebtedness to such bank for the purpose of protect- ing such bank against loss or giving financial assistance to it . The Board of Governors of the Federal Reserve System is authorized to define the term' executive officer', to determine what shall be deemed to be a b orrow ing, indebt ednes s, lo an, o r exte nsion of c redit, for the purposes of this subsection, and to prescribe such rules and regula- tions as it may deem necessary to effectuate the provisions of this sub- sectio n in accordance with its purposes and to prevent e vasions of such provisions. Any executive officer of a member bank accepting a loan or extension of credit which is in violation of the provisions of this subsection shall be subject to removal from office in the man- ner pr escribed in sect ion 30 of the Ban king Act of 1933 : Provided, That for each day that a loan or extension of credit made in violation of this subsection exists, it shall be deemed to be a continuation of such violation within the meaning of said section 30 ." Endorsement of loans by officers. "Executive officer" to be defined . Ru les and regula- tions . Penalty provision. Pro viso . Continuation of vi o- lation . Vol.48,p.193.
